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June 7, 2010 |
DBP signed recently an emissions reduction purchase agreement with Tricorona Carbon Asset Management Pte., Ltd. of Singapore for the sale of certified emission reduction (CER) credits to be generated by three mini-hydro power plants funded by the Bank.
President & CEO Reynaldo G. David said the agreement represents a major step in the Bank’s Clean Development Mechanism (CDM) activities and underlines its key role in the global Climate Change Program initiative.
The three mini-hydro power plants are the Cantingas mini-hydro power plant owned and operated by Romblon Electric Cooperative Inc.; the Hinubasan mini-hydro power plant owned and operated by the municipality of Loreto, Dinagat Island; and Sevilla mini-hydro power plant owned and operated by Bohol Electric Cooperative (BOHECO) I, with the municipality of Sevilla, Bohol as co-owner. The three projects are expected to reduce emission of about 111,000 tons of carbon dioxide during the first seven-year crediting period.
The emission reduction purchase agreement was facilitated by CarbonAided, Ltd. of London, which DBP tapped in 2008 as financial manager and agent in the sale of carbon credits of the three projects.
DBP is currently working on the registration of the projects with the United Nations Framework Convention on Climate Change CDM Executive Board in Bonn, Germany.
The CDM is an arrangement under the Kyoto Protocol, which allows industrialized countries with a greenhouse gas reduction commitment to invest in initiatives that lessen emissions in developing countries as an alternative to more costly emission reduction measures. Under the CDM, project owners may profit from the sale of carbon emission reduction credits that result from the implementation of their projects. |
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